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BAE Systems Pension Schemes Trustees Appoint Goldman Sachs Asset Management for Approximately £23 Billion UK Pension Schemes Mandate

6 September 2023 | 3 minute read
The agreement marks the largest OCIO mandate awarded to date in the UK Market. BAE Systems’ in-house investment team will join Goldman Sachs Asset Management

LONDON – September 6, 2023 – The Trustees of the BAE Systems Pension Scheme and BAE Systems Executive Pension Scheme (“the Trustees” of “the Schemes”) have outsourced the management of their approximately £23 billion UK defined benefit pension scheme assets to Goldman Sachs Asset Management.

BAE Systems’ in-house investment management team will join Goldman Sachs Asset Management and continue to provide investment services to the Schemes. It is expected that the asset management and team transition to Goldman Sachs Asset Management will take place towards the end of 2023.

The agreement offers continuity to the Trustees, who will benefit from the global investment capabilities of Goldman Sachs across public and private markets, whilst maintaining the expertise of the existing in-house team. The agreement is expected to deliver performance and cost benefits for the Schemes through the greater scale and efficiency that Goldman Sachs can achieve as one of the world’s leading asset managers with more than £2.1 ($2.7) trillion in assets under supervision.

The agreement reflects the continued evolution of the UK pensions market and is the largest Outsourced Chief Investment Officer (“OCIO”) appointment in the UK to date.

The Trustees’ decision to appoint Goldman Sachs Asset Management follows a highly competitive tender process.  

The appointment affirms Goldman Sachs Asset Management’s position as the second largest OCIO manager globally and one of the largest in the UK, with global OCIO assets under supervision of more than £200 billion. Goldman Sachs Asset Management has proven capabilities in liability driven investing (“LDI”), cashflow driven investing (“CDI”), sustainable investing, external manager selection and private markets. The mandate also expands Goldman Sachs Asset Management’s position in the UK LDI and CDI markets, adding to the approximately £175 billion managed by the firm globally in LDI and CDI portfolios.

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We are proud to partner with BAE Systems and the Trustees to deliver this long-term solution, which brings the full capabilities of Goldman Sachs to the benefit of BAE Systems’ Pension Schemes.”
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David Solomon
Chief Executive Officer of Goldman Sachs
“
As we focus on growing our Asset Management business and footprint for the benefit of our clients globally, this mandate reflects the extensive and unique capabilities of our business to navigate increasingly complex market cycles across public and private markets and our long-term commitment to supporting our clients.”
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Marc Nachmann
Global Head of Asset & Wealth Management at Goldman Sachs
“
This partnership underscores our deep commitment to the UK pensions market and reflects our position as a leading provider of solutions for pensions and institutional clients across Europe. We are pleased to welcome the team to Goldman Sachs – their expertise will continue to provide significant value to the Schemes and our broader client base.”
“
The in-house management team has delivered excellent stewardship of the Schemes’ bespoke investment strategies over many years. We are delighted that this agreement with Goldman Sachs Asset Management brings together both the expertise of our in-house team and the full capabilities of Goldman Sachs and we look forward to working together to continue to provide long-term value for our members.”
“
Through proactive actions of BAE Systems plc, in our role as scheme sponsor, the Trustees and the excellent work of our in-house investment management team, the pension funding level has moved from a significant deficit to a surplus. As we continue to look at ways to further de-risk pension liabilities, reducing the cost and improving the efficiency of asset management are essential.”
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Brad Greve
Group Finance Director, BAE Systems

Notes for Editors

About Goldman Sachs Asset Management

Goldman Sachs Asset Management delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs oversees more than £2.1 ($2.7) trillion in assets under supervision as of June 30, 2023.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

In public markets, Goldman Sachs Asset Management is a leading investor across fixed income, liquidity, equity and multi-asset solutions. It is one of the largest managers of private capital globally and invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate, infrastructure and sustainability.

Media Contacts

For Goldman Sachs:

Matthew Newton

+44 207 774 9649

For BAE Systems:

Kristina Anderson

+44 7540 628673

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